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Bitcoin Lightning Network Could Reach 56 Million Users After Coinbase Integration

Last Updated May 1, 2024 8:28 AM
Teuta Franjkovic
Last Updated May 1, 2024 8:28 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Coinbase integrates Lightning Network, enabling fast and virtually free Bitcoin transactions for its millions of users.
  • The exchange has 56 million customers all over the world.
  • Announced eight months ago, integration positions Coinbase as a leader adopter of new technology for BTC transactions.

Coinbase, one of the largest cryptocurrency exchanges globally, has recently integrated  the Lightning Network (LN) architecture into its platform.

This development enables its users to connect with a network of 56 million users worldwide.

Coinbase Goes Lightning For Instant & Fee-Free BTC Transactions

Despite the technology being available since 2017, Coinbase has only now incorporated it into its platform. It allows Coinbase users to connect with a network of 56 million users worldwide, significantly improving their transaction experiences.

This new technological enhancement is powered by Lightspark, a company specializing in Lightning Network solutions, founded by David Marcus.

After the announcement, Coinbase Chief Executive Brian Armstrong expressed  his excitement about going live on the Lightning network. He emphasized the goal of achieving transactions that are both under one second and one cent to spur the next wave of adoption.

Lightning Network Integration Prioritizes Security

For this integration , Coinbase is using Lightspark’s remote-key signing implementation. This means Coinbase retains complete control of the signing keys while Lightspark operates its node.

Protocol Specialist Viktor Bunin revealed  Coinbase’s intentions to integrate the Lightning Network in September 2023.

This integration  highlights Coinbase’s commitment to maintaining a leading position in the cryptocurrency industry by embracing technological advancements, despite some delays in implementation.

Millions Now Enjoy Instant, Cheap Bitcoin Transactions

The Lightning Network is a payment solution layered on top of Bitcoin. It utilizes Bitcoin transactions and time-locks to establish nodes and channels that facilitate low-cost and rapid transactions. Normally, users on the Bitcoin base layer have to wait at least ten minutes for transaction confirmation.

However, with the Lightning Network, this waiting period is slashed to seconds, and the fees are reduced. Eight months after its announcement, the platform is now available to millions of Coinbase users.

Lightspark’s CEO David Marcus expressed his excitemen t about the project. He said it was a “big milestone” for both the network and Bitcoin.

Despite concerns about Bitcoin’s privacy and self-custody raised by the US Department of Justice, Coinbase, one of the largest companies in both the industry and the country, is advancing its efforts in Bitcoin adoption.

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